Brazilian Finance Minister Fernando Haddad has canceled his planned trip to Europe this week as he faces mounting pressure to address fiscal concerns at home. The Finance Ministry announced on Sunday that Haddad will remain in Brasilia at the request of President Luiz Inácio Lula da Silva to focus on pressing domestic issues.
Haddad’s decision to stay in Brazil comes amid investor anxiety over the government’s delay in presenting promised spending-cut measures. Last Friday, the U.S. dollar reached its highest level against the Brazilian real in spot trading since May 2020, reflecting market concerns over the lack of clear fiscal direction and the upcoming U.S. presidential election.
Government officials had previously suggested that these fiscal measures would be outlined sometime after Brazil’s recent municipal elections, although no firm deadline was given. Local news outlet Folha de S. Paulo reported last week that the announcement would likely be delayed due to Haddad’s anticipated travel.
The Finance Ministry confirmed that Haddad’s European trip, initially scheduled for Nov. 4-9, will be rescheduled at a later date. Meanwhile, the minister will prioritize domestic economic matters, though specific details have yet to be disclosed.
